The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-01-09
The PACIFIC RAILROAD
FUNDING BILL AMENDED BY MR..
SPRINGER.
He Proposes to Eliminate That POr-
tion COncernipg the Payment
OF Indebtedness.

an amendment which he proposes
to offer to the Pacific railroad
fnnding bill when it comes undel
CO lsideration by the House. He pro
poses to strike out all that portion o
the bill which fixes the mode by which
the company shall pay their iudet ted
ness to the government and to inserI
in lieu thereof the following provis'
ions:
Paragraph A-The companies afore-
said shall, respectively, on the first
day of October, 1887, and seminar
nusliy thereafter, pay into the Treas.
ary of the United States sum equal
to the amount which the United
States is re quired to pay semi-annually
as interest ON the subsidy bonds ed
vanced to each Of the said companies
respectively, in aid OF Pdc fl railroads
and branches until the date Of the ma
turity Of said bonds respsc lively, less
the amounts OF any payments or Teim-
bursements made by any of said COM
psnies respectively during the six
months previous TO any such payment
on their indebtedness under any act
of Congress heretofore passed.
Paragraph BAT the respective
dates OF the maturity of said sub
sidy bonds the Secretary of the
Treasury shall add to the sum
OF the principal Of SUCH mltured
bonds all the interest paid by the
United States upon the same. From
sad amounts go ascertained shall be
deducted any payments or reimburse
ments made by any oil said companies
on their Indebtedness at any time be-
fore October l, 1887, and all the
amounts in the sinking fund properly
applicable to the respe ctive comp snies
computing the value of any hoods
in such sinking fund at their m irket
value at any day to be agreed upon by
the presidents of the companies inter
ested therein and the SCctetlTy of the
Treasury and simple interest at the
rae of 3 per cent. per annum upon
said amounts in the sinking fund, from
such day agreed upon, until the aver
age date of the maturity of the sub
sidy bonds.
Paragraph C-Upon the sum of the
principal OF said subsidy bonds re-
naming due and unpaid a. the re-
spectiva dates OF the maturity thereof,
the said companies shall pay into the
Treasury of the United States interest
thereon at rate which shall equal
but shall not exceed the rate OF inter-
est at which the bonds OF the United
States Issued in aid of said companies
can be extended. And the Secrt tary
OF the Treasury is hereby authorized
to extend the same not exc 1ediug ten
years from the respective dates OF
their maturity and at the lowest rate
of interest at which such bonds can
be extended at par from that time.
Paragraph D-Upon the sum OF the
interRs. upon said subs dy bonds. re-
naming due and unpaid by the said
companies at the respective dates OF
the maturity of said subsidy bouds,
said company shall pay into the Treas
ury of the United States Interest at the
rate OF 4 per cent. per snnum, payable
semi annually upon the 1st OF October
and the 1st of April OF each year dur
ing such time rs the principal OF such
bonds shall be extended as herein pro-
vided.
Paragraph Eft is further provided
that the said companies, respectively,
may extend the lien on the first mort
gage bonds now issued by the respec-
i've companies for the further term OF
ten years after the respective dates Of
the maturity thereof, but at no higher
or greater rate OF interest than 4 per
cent. per annum, upon this further
condition, that the difference between
the rate now paid by said companies
upon said first mortgage bonds aud
that Of per cent. per annum, shsll
be applied exclusively to liquidate
the principal of the indebtedness Of
said companies to the United States.
Paragraph FAT the time to which
the payments of the said subsidy
bonds shall be extended, as here
in provided, the said compa-
MES are authorized to ISSUE bonds
secured by mortgages upon their
franchises and property to an
amount equal to the indebtedness se-
cured by prior liens to that of the
United States. But such new bonds
shall not become prior liens until the
extinguishment of the indebtedness Of
said companies to the United States.
And, If at the date to which the last
issue OF said subsidy bonds was ex-
tended, said company shall have COM
piled with the provisions OF this act
and shall continue thereafter to pay
into the Treasury Of the United States
ssmi.annually an amount equal to the
interest upon such extended bonds at
the rate OF 4 per cent. of the amount
OF such interest Indebtedness still due
and payable, the Secretary of the
Treasury is authorized to allow one
year to said companies thereafter In
which to complete the payment OF the
whole amount Of principal due TO the
United States.
Paragraph g In making payments
under the provisions OF this act and
the acts to which this is amendatory
the Central Pacific Railroad Company
aud its successors shall pay into the
Treasury OF the United States, when
the same shall become due and pay
able as aforesaid, the installments OF
indebtedness OF itself and the West
ern and Pacific railroad; the Union
Pacific Railroad Company and its
successors shall pay those OF the
Union Pacific Railroad Company and
the Kansas and Pacific Railroad Com
pany; the Central branch of the
Union Pacific Railroad Company shall
pay those OF itself; and the Sioux
City Railroad Company and its sue
cessors those OF itself.
Mr.. Anderson, Of Kansas, also gave
notice OF proposed amendment pro.
viding that nothing in this act shall
be constructed as sauctioning the con-
solidation Of the Union Pacific Rail-
road Company with the Kansas Pacific
railroad and the Denver Pacific Rail
road Company and the transferring OF
their franchises aud property TO a cor
- 4 =. NJ A..